Prepare the Income Statement and Balance Sheet extract for the year ended 30 June 2019

Question 5 (14 marks) On 1 July 2017, Webster Motors Ltd acquired equipment under a four-year finance lease agreement. The present value of the lease payments is $431,213. It has an estimated useful life of five years and estimated residual value of $31,213. The implicit rate of interest on the lease was 8% per annum. The lease involved five payments, an initial payment of $100,000 and four annual payments on 30 June each year of $100,000. Webster Motors Ltd will retain the equipment at the end of the lease